Question

Ravi bought a bicycle at ₹4000 and its value depreciates at the rate of 10% per annum. Find its value after one year.

• A. ₹ 3600
• B. ₹ 3000
• C. ₹ 2800
• D. ₹ 2400

Answer 1

The correct option is A ₹ 3600

Given,
Principal (P) = ₹4000
Rate (R) = 10%

Now by using the formula for depreciating value, we can write

$A=P\times [1-\frac{R}{100}{]}^n$
$A=4000\times [1-\frac{10}{100}{]}^1$
$A=4000\times [1-\frac{1}{10}]$
$A=4000\times \left[\frac{9}{10}\right]$
$A=₹3600$

The value of bicycle after one year will be ₹3600.